Van Essen, Matthew J. (2008): A Simple Supermodular Mechanism that Implements Lindahl Allocations.
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Abstract
This paper introduces a new incentive compatible mechanism which for general preference environments implements Lindahl allocations as Nash equilibria. The mechanism does not increase in structural complexity as consumers are added to the economy, the minimum dimension of data needed to compute payoffs is smaller than other mechanisms with comparable properties; and for quasilinear environments, the mechanism induces a supermodular game for appropriate choices of the mechanism parameters. Thus, this new Lindahl mechanism provides a connection between the desirable welfare properties of Lindahl allocations and the desirable theoretical/ convergence properties of supermodular games.
Item Type:  MPRA Paper 

Original Title:  A Simple Supermodular Mechanism that Implements Lindahl Allocations 
Language:  English 
Keywords:  Lindahl Equilibrium; Nash Implementation; Supermodular Games 
Subjects:  H  Public Economics > H2  Taxation, Subsidies, and Revenue > H21  Efficiency; Optimal Taxation D  Microeconomics > D0  General > D02  Institutions: Design, Formation, and Operations C  Mathematical and Quantitative Methods > C6  Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C62  Existence and Stability Conditions of Equilibrium C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C72  Noncooperative Games 
Item ID:  12781 
Depositing User:  Matthew J. Van Essen 
Date Deposited:  17. Jan 2009 05:45 
Last Modified:  20. Feb 2013 07:41 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/12781 
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